Google Financing Issues That Google Term Paper

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(Harris, 2004)

Google was able to show such confidence, even arrogance, however, in its initial transformation into an IPO because of its unique, stratospheric success as a company. Also, by establishing a wide shareholder base amongst the public, it was able to resist control by a concentrated faction of shareholders. When going public, most IPOs fall "under greater pressure to produce steady earnings growth -- an expectation that some executives say leads to shortsighted management decisions," and the management of a public company can feel compelled to "make some decisions just so you can show growth from quarter to quarter."(Liedtke, 2004)

Regarding Google, one industry analyst stated: "After the IPO, they're going to have to think in terms of predictable quarterly results and momentum...You have to have a level of predictability and experience to warrant being a public company.

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"(Liedtke, 2004)

But canny Google founders, forever thinking outside of the box, found a way "to insulate themselves from outside pressure," by creating a two-class stock hierarchy designed to give them effective veto power...selling Class A common stock to the public, but the founders "will control Class B stock, which will have 10 times the voting power." (Liedtke, 2004) Given Google's current success in selling its shares, it may stand out as an anomaly in the history of IPO standing as a de facto anagram for 'increased public control,' or provide a model for future corporate founders who wish to maintain control over their organizations, even after going public.

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https://www.aceyourpaper.com/essays/google-financing-issues-google-41557